W5 - Gifts Flashcards
What is a margin promise?
A sale. The transfer of a property interest via a contractual arrangement that involves a mutual exchange of obligations with legally enforceable remedies in the event of a breach.
What is a gift?
a gratuitous, non-bargained for unilateral transaction often referred to as a “non-margin promise”
Do gifts have the same legal protections as a margin promise?
No, because they are informal
what is the deed of a gift?
A signed document conferring property rights. So, if a donor delivers the deed, but then refuses to transfer the actual property, then the donee can sue
What will make a singed deed irrevocable?
it must convey a valid and irrevocable gift
In the absence of a deed, what 3 elements will make a gift complete?
An intention to make a gift on the part of the donor
Acceptance of the gift by the donee
A sufficient act of delivery
What distinguishes a contract from a gift?
Sufficient delivery. Contracts merely require an exchange of promises.
Jimmy makes a promise to give Andrea a Ferrari. He researches the best model to give, but Andrea insists upon it being painted a color that doesn’t exist. Can Andrea sue for the car? Why/not?
No, because Jimmy made no act of delivery.
Will equity effect an imperfect gift (one that does not meet the 3 elements)?
No
When would equity perfect an imperfect gift?
When a donor expresses an intent to make a gift while alive and then does before delivery can be made. In death, the executor is appointed to make delivery.
Acceptance of a gift is always ___
presumed
A donor must have an intent ___
To make a gift in the present, not the future
What is Donatio Mortis Causa?
a gift given by someone who is contemplating an imminent death
If Mr. Smith promises his billions to Zach on his deathbed, and then recovers, what happens?
If Mr. Smith wishes to recind his gift, he can
if a person is ailing, can they make a gift inter vivo?
yes, which makes things complicated as inter vivo gifts cannot be recinded once given
